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USISPF, AAHOA welcome lower tariffs on India
Groups call tariff cut a first step toward a broader bilateral trade agreement.
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Staff Reporter - Mon, 02, Feb 2026
- 16:49 EST
- 28
USISPF/ AAHOA / Facebook
Advocacy groups, the U.S.-India Strategic Partnership Forum and the Asian American Hotel Owners Association welcomed the reduction in U.S. tariffs on Indian goods to 18 percent.
The announcement came after a Feb. 2 call between U.S. President Donald Trump and Indian Prime Minister Narendra Modi, during which the two leaders agreed to lower the tariff rate and roll back additional duties linked to India’s purchases of Russian oil.
Also Read: US, India agree on trade deal, lower tariffs, Trump says
They also discussed advancing negotiations toward a broader bilateral trade agreement and increasing India’s purchases of U.S. energy, technology, agricultural and other products.
The U.S-India Strategic Partnership Forum (USISPF) said the announcement “reaffirms their shared commitment to deepen the U.S.–India economic partnership and advance a bilateral trade agreement.”
USISPF enthusiastically welcomes President @realDonaldTrump's announcement following his conversation with Prime Minister @narendramodi, which reaffirms their shared commitment to deepen the U.S.–India economic partnership and advance a bilateral trade agreement.
— US-India Strategic Partnership Forum (@USISPForum) February 2, 2026
Full… pic.twitter.com/DrT5bGdki2
In a statement, USISPF said the reduction of India’s reciprocal tariff from 25 percent to 18 percent “marks an important and positive first step.”
“While the agreement's specifics are pending, today’s announcement signals strong political will on both sides to move toward a comprehensive U.S.–India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors,” the statement said.
“A BTA between the two nations would deliver meaningful benefits for businesses, workers, and consumers in both countries, while strengthening supply chains and economic resilience,” the statement added.
The forum said both governments have made clear that this is “only the beginning,” with additional phases and negotiations expected in the coming months.
USISPF also reiterated its commitment to work with both governments to expand bilateral trade toward the $500 billion target, noting that a stronger trade and investment relationship is “central to advancing a stable, resilient, and rules-based Indo-Pacific.”
USISPF also congratulated the U.S. Ambassador to India Sergio Gor for his role in advancing the trade agreement and said it looks forward to working closely with him.
USISPF congratulates @USAmbIndia @SergioGor for his leadership in advancing the U.S.–India trade agreement. We look forward to working closely with him to drive a forward-looking agenda. https://t.co/vhmcfdebFv
— US-India Strategic Partnership Forum (@USISPForum) February 2, 2026
Meanwhile, the Asian American Hotel Owners Association (AAHOA) described the development as a “geoeconomic breakthrough” that will reshape trade and boost confidence among small business owners.
“This agreement between the United States and India is a geoeconomic breakthrough that strengthens two democracies while reshaping global trade,” said AAHOA chairman Kamalesh Patel.
“When barriers fall between markets representing nearly one-quarter of the world’s population, investment accelerates, travel expands, and small business owners, including hotel operators, gain the confidence to grow, hire, and build lasting prosperity,” he added.
AAHOA president and CEO Laura Lee Blake said the agreement would have ripple effects beyond goods trade.
“Lower tariffs do not just move products. They unlock momentum for tourism, hospitality, and the entrepreneurs who depend on strong international partnerships,” she said.
AAHOA, which represents more than 20,000 hotel owners across the United States, said the agreement would support open markets, economic stability, and international cooperation that benefit hotel owners, employees, and local communities.
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